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Psychedelic Medical Start-Up Awakn Life Sciences Enters the UK Market with Dr. Ben Sessa

Awakn to acquire controlling interest in Dr. Ben Sessa’s clinical operations

Awakn announces today that it has signed a binding investment agreement to acquire a controlling interest in Mandala Therapy Limited, the UK based psychedelic clinical practice run by acclaimed author, researcher and consultant psychiatrist, Dr. Ben Sessa.

Dr. Sessa will become Awakn’s Chief Medical Officer and will open the UK’s first psychedelic-assisted psychotherapy clinic over the coming months. Under his leadership, Awakn intends to oversee a revolutionary shift in the treatment approach for mental health disorders, all backed by scientific evidence that triggered the FDA to grant breakthrough-therapy status for MDMA and psilocybin.

As part of the agreement, Dr. Sessa is also building training pathways that will open access for psychiatrists and psychologists across the country. Awakn expects the UK to continue to progress towards medicalising psychedelics, currently undertaking trials for MDMA and psilocybin while political reform is being led by Crispin Blunt MP and the Conservative Drug Reform Group.

Speaking of the acquisition, Dr. Sessa said, “Enough of the incessant belief that mental health disorders cannot be cured, this is the legacy of the ill-informed. Psychedelics have the potential to heal when used correctly and with psychotherapy pathways built for purpose. We are progressive thinkers at Awakn Life Sciences and see the need for clinics that are experts in the use of psychedelic medicine under safe, efficacious and scientifically validated frameworks. We are building the centre of excellence for the UK.”

Commenting on the entry into the UK, Awakn CEO Anthony Tennyson said, “We see the early mover advantage in the UK market with patients already using ketamine as part of their treatment plans. Now is the time to build the UK’s first psychedelic clinic to heal the growing tide of the mentally ill, and there is no-one better to lead the renaissance than Dr. Sessa. He has dedicated his professional career to psychedelic medicine, and we are honoured to have him leading our medical team.”

The transaction by Awakn marks the first of its kind by a Canadian company in the UK and follows a period of huge growth of capital being invested in the psychedelic market across North America and Europe. The completion of the acquisition remains subject to certain closing conditions.

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Wuhan General Group Announces Name Change and Rebranding to M2Bio Sciences

MONTREAL, QC / ACCESSWIRE / June 18, 2020 / WUHAN GENERAL GROUP, INC. (OTC PINK:WUHN) (“Wuhan” or the “Company”), a bioceutical company focused on alternative plant-based cannabinoids and psilocybin medical research is pleased to announce a corporate name change and rebranding of the company to M2Bio Sciences, Inc (“M2Bio“). The name change was effective June 17, 2020, with the State of Nevada.

In addition to the new corporate name, the Company ticker symbol on OTCMarket will change to ‘MMBS’ with the approval of Finra. The Company will issue a press release in the near future announcing the date at which the Corporate name and new ticker symbol will take effect.

Along with the name and symbol change, the Company will reveal a new corporate brand identity including a new logo and website. The Company will provide further updates regarding these changes in the near future.

Dr. Anna Morera Leralta, CMO of M2Bio, commented, “Our strategic move marks an important milestone in the Company’s growth. By changing our name, we are branding a strong corporate identity that will exactly personify our company in the eyes of the public and investors. Cannabinoid and psychedelic medicine provide our shareholders with access to a rapidly growing market that is altering the future of healthcare we used to know.”

“The new name M2Bio has been chosen to better reflect the company’s strategic focus on applying Marijuana and Mushrooms into the roots of its research and development of plant-based medicine and drug discovery, and to mark a new chapter in the Company’s growth. We are so deeply committed to developing innovative, better and safer medicines that will truly help treat patients,” said Jeff Robinson, CEO of M2Bio.

About Wuhan General Group, Inc./ M2Bio Sciences, Inc

Wuhan General Group, Inc. through its wholly-owned subsidiary MJ MedTech is a nutraceutical biotechnology company that researches, develops and commercializes a range of CBD-based products under Dr. AnnaRx™ and Medspresso™ brands. In addition, its wholly-owned division, M2Bio is researching and developing indications for psilocybin new therapies that will help patients who suffer from addiction, mental illness, Alzheimer’s and Parkinson’s. Our mission is to advance botanical-based medicine to the forefront by deploying best-practice science and medicine, clinical research and emerging technologies. Wuhan is listed and traded on the Over the Counter Bulletin Board of NASDAQ under the trading symbol “WUHN”.

For further information:

Publicly traded company (OTC PINK:WUHN)

Website: www.wuhn.org

E-mail: info@wuhn.org

Follow us on Twitter: https://twitter.com/WGG_Company

Follow us on Facebook: http://www.facebook.com/wuhn

Forward-Looking Statements:

Safe Harbour Statement – In addition to historical information, this press release may contain statements that constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this press release include the intent, belief, or expectations of the Company and members of its management team with respect to the Company’s future business operations and the assumptions upon which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance, and involve risks and uncertainties and that actual results may differ materially from those contemplated by such forward-looking statements. Factors that could cause these differences include, but are not limited to, failure to complete anticipated sales under negotiations, lack of revenue growth, client discontinuances, failure to realize improvements in performance, efficiency and profitability, and adverse developments with respect to litigation or increased litigation costs, the operation or performance of the Company’s business units or the market price of its common stock. Additional factors that could cause actual results to differ materially from those contemplated within this press release can also be found on the Company’s website. The Company disclaims any responsibility to update any forward-looking statements.

SOURCE: Wuhan General Group, Inc.

View source version on accesswire.com:
https://www.accesswire.com/594322/Wuhan-General-Group-Announces-Name-Change-and-Rebranding-to-M2Bio-Sciences

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Endometriosis: an invisible disease affecting half a million Canadians

  • 500,000+ Canadian girls and women are affected by 1
  • 9 years old is the average diagnosis age in Canada. 1
  • In Canada, individuals with endometriosis often experience a diagnosis delay of more than five 1

 

Montreal, QC, June 17, 2020 – AbbVie (NYSE: ABBV), a global, research and development-based biopharmaceutical company, sponsored a first of its kind cross-sectional, online survey of 30,000 women in Canada aged 18 to 49. Earlier this year, the results were published in the Journal of Obstetrics and Gynaecology Canada (JOGC) in a paper entitled “Prevalence, Symptomatic Burden, And Diagnosis Of Endometriosis In Canada: Cross-Sectional Survey Of 30 000 Women.”1

 

Findings showed that Canadians with endometriosis often experience a diagnosis delay of more than five years. This half decade delay in disease recognition indicates an important unmet need for more timely diagnosis of endometriosis across Canada.1

 

“Often misdiagnosed and mismanaged; endometriosis can have a significant negative impact on a person’s physical and mental health and dramatically hinder their overall quality of life. Women need to know that painful periods are not normal. There are treatment options available, as long as endometriosis is identified quickly. Unfortunately, that is not always the case,” says Dr. Sukhbir Singh, MD, Professor, Department of Obstetrics and Gynecology, University of Ottawa, Ottawa, ON, who is a primary investigator in the study.

 

In Canada, it’s estimated that seven per cent of women will develop endometriosis.1 Endometriosis is a chronic inflammatory disease that predominantly affects women of reproductive age.2 Endometriosis occurs when endometrial tissue grows outside the uterus. Women with endometriosis experience various symptoms including: non-menstrual pelvic pain, pain during intercourse (dyspareunia), heavy menstrual bleeding, pelvic pain, and cramping during menstruation.3 Infertility can also be common with endometriosis.3

 

“The road for an endometriosis patient is long, with various treatments and no cure. I deal with the physical aspect as well as the emotional and mental pull of it all,” said Alexandra Camara, a Canadian living with endometriosis. “I became symptomatic at an early age. My symptoms increased and became more relevant when I was 14, and at 19, I was formally diagnosed. Receiving a proper diagnosis, then later excision surgery, was monumental to symptom management. To help raise awareness, I’m sharing my story to empower women not to suffer in silence.”

 

According to a survey, seven out of ten women experience unresolved – on-going – endometriosis pain.4

Endometriosis is a life-long journey. Often, patients who are diagnosed and on treatment, or have had surgery, still deal with unmanaged pain. It is important for patients to have continuous support, knowledge and access to clinically proven treatments. If still in pain, be your own advocate, seek out options and speak to a health care expert about all treatment options.

 

 

Globally, an estimated 176 million women live with endometriosis.5 “Although there is currently no cure for endometriosis, we are committed to researching and supporting Canadians living with endometriosis in an effort to provide resources and hope for this disease,” said Denis Hello, Vice President and General Manager, AbbVie Canada. “AbbVie has conducted some of the largest clinical trials in endometriosis in the world. We will continue to research the disease’s most common symptoms to support disease management needs.”

 

Resources such as the Endometriosis Network Canada and online chats via #EndoEmpowered can provide important information and foster a sense of community for endometriosis patients in Canada.

 

About AbbVie

AbbVie’s mission is to discover and deliver innovative medicines that solve serious health issues today and address the medical challenges of tomorrow. We strive to have a remarkable impact on people’s lives across several key therapeutic areas: immunology, oncology, neuroscience, eye care, virology, women’s health and gastroenterology, in addition to products and services across its Allergan Aesthetics portfolio. For more information about AbbVie, please visit us at www.abbvie.com. Follow @abbvie on Twitter, Facebook, Instagram, YouTube and LinkedIn.

 

-30-

 

Media:

Eileen Murphy AbbVie Canada 514-449-9788

eileen.murphy@abbvie.com

 

 

1 Prevalence, Symptomatic Burden, and Diagnosis of Endometriosis in Canada: Cross-Sectional Survey of 30 000 Women. Dr. Sukhbir Singh, et al. http://www.jogc.com/article/S1701-2163(19)30980-6/fulltext. Accessed May 2020.

2 YourPeriod.ca. What is Endometriosis? https://www.yourperiod.ca/endometriosis/what-is-endometriosis/ Accessed May 2020.

3 YourPeriod.ca. What are the symptoms of Endometriosis? https://www.yourperiod.ca/endometriosis/what-are-the-symptoms-of- endometriosis/ Accessed May 2020.

4 De Graaff AA, D’Hooghe TM, Dunselman GAJ, Dirksen CD, Hummelshoj L, WERF EndoCost Consortium, Simoens S. The significant effect of endometriosis on physical, mental and social wellbeing: results from an international cross-sectional survey. Hum Reprod. 2013;28(10):2677-2685. Accessed May 2020.

5 David Adamson, G., Kennedy, S., & Hummelshoj, L. (2010). Creating solutions in endometriosis: Global collaboration through the

world endometriosis research foundation. Journal of Endometriosis, 2(1), 3-6. Accessed May 2020.

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Vireo Health Announces First Quarter 2020 Financial Results

– First-quarter revenue of $12.1 million increased 34% sequentially and 110% year-over-year –
– Minimal capex requirements position Company for stronger second half compared to 2019 –
– Recent cost reduction initiatives to begin materializing in results during the second quarter –

MINNEAPOLIS, June 16, 2020 /PRNewswire/ — Vireo Health International, Inc. (“Vireo” or the “Company”) (CNSX: VREO; OTCQX: VREOF), the science-focused, multi-state cannabis company with active operations in exclusively medical-only markets and licenses in nine states and the Commonwealth of Puerto Rico, today reported financial results for its first quarter ended March 31, 2020. All currency figures referenced in this release reflect U.S. dollar amounts.

Vireo Logo (PRNewsfoto/Vireo Health, Inc.)

“Our first-quarter results demonstrate the improving trajectory of our business, with sequential revenue growth of 34 percent representing the strongest quarter of growth in Vireo’s history,” said Founder & Chief Executive Officer, Kyle Kingsley, M.D. “As we continue to focus on optimizing our core medical markets, we believe there is significant untapped potential for Vireo to improve revenue growth and profitability as we increase scale in these attractive, limited-license jurisdictions.”

Dr. Kingsley continued, “We have many opportunities to continue growing our business organically through new product introductions, by expanding our footprint of operational dispensaries, and by continuing to improve our overall product and sales channel mix as compared to prior quarters. We’re also cautiously optimistic that recent enhancements to point-of-sale protocols in response to COVID-19 like telemedicine consultations and curbside pick-up may become permanent in several of our markets, and we continue to believe that each of our core medical markets has the potential to enact adult-use legislation over the near- to medium-term future.”

First Quarter 2020 Financial Summary

The Company generated operating revenue in seven states during the first quarter: Arizona, Maryland, Minnesota, New Mexico, New York, Ohio, and Pennsylvania. Total revenue increased 34 percent sequentially and 110 percent year-over-year to $12.1 million versus $5.8 million in the first quarter of 2019.

Retail revenue was approximately $8.2 million in Q1 2020, an increase of 58 percent compared to $5.2 million in Q1 2019. Wholesale revenue of $3.9 million increased by $3.3 million as compared to $610,881 in Q1 2019, with the increase principally due to the acquisitions of wholesale businesses in Arizona in the prior-year quarter and the growth of wholesale operations in Pennsylvania and Maryland.

Gross profit before fair value adjustments was $3.4 million, or 28 percent of revenue, as compared to gross profit of $2.1 million or 37 percent, in the same period last year. The variance in gross profit as compared to the prior year was driven primarily by a temporary increase in the mix of sales in wholesale versus retail markets, a product sales mix shift to address demand for concentrated distillate products, and greater competition across several markets as they mature.

Total operating expenses in the first quarter were $9.7 million, as compared to $3.7 million in the first quarter of 2019, with the increase primarily attributable to increased salaries and wages, professional fees, and general and administrative expenses necessary to support the Company’s growth.

Total other expense was $995,008 during Q1 2020, compared to $4.6 million in Q1 2019. The favorable reduction in other expense was primarily attributable to the non-recurrence of $3.5 million in listing expenses related to the Company’s go-public transaction in the prior-year quarter, and a gain on derivative liability of $1.3 million.

Net loss in Q1 2020 was $2.0 million, as compared to net loss of $3.4 million in Q1 2019. Adjusted net loss for Q1 2020 was $8.1 million, as compared to a loss of $4.8 million in the prior year quarter.  Adjusted EBITDA, as described in accompanying disclosures and footnotes, was a loss of $3.3 million in Q1 2020, as compared to a loss of $1.2 million in Q1 2019. Please refer to the Supplemental Information and Reconciliation of Non-IFRS Financial Measures at the end of this press release for additional information.

Other Developments

There was a global outbreak of a new strain of coronavirus, COVID-19, during the first quarter. Vireo’s medical cannabis businesses were deemed “essential” in each of its operational markets, and to date there has been no material adverse impact on the Company’s financial performance because of the virus.

During the first quarter, the Company implemented several strategic initiatives to optimize its cost structure and operating model. These initiatives included shuttering the Company’s New York corporate office, the related termination of an office lease, the reduction of its workforce by approximately nine percent, and the elimination of certain other costs.

On March 10, 2020, the Company announced that it had closed a non-brokered private placement of CAD $10.0 million of 13,651,574 units of the Company. Each Unit is comprised of one subordinate voting share in the capital of Vireo (a “Share”) and one subordinate voting share purchase warrant of Vireo (a “Warrant”). Each Warrant entitles the holder to purchase one Share (a “Warrant Share”) for a period of three years from the date of issuance at an exercise price of CAD $0.96 per Warrant Share, subject to adjustment in certain events. The Company intends to use the proceeds from the Offering to fund various growth initiatives and for working capital and general corporate purposes.

On April 30, 2020, the Company announced the formation of a wholly-owned subsidiary called Resurgent Biosciences, Inc. Resurgent Biosciences is a Delaware corporation which has been created with the intent to commercialize Vireo’s portfolio of intellectual property and related initiatives in a non-plant-touching entity which may broaden potential partnership opportunities or other strategic outcomes as Vireo seeks to monetize scientific advancements within the cannabis industry and beyond. Vireo currently has several patent applications pending approval by the United States Patent and Trademark Office. Its patent for harm reduction in tobacco products was allowed earlier this year.

Balance Sheet and Liquidity

As of March 31, 2020, total current assets were $62.2 million, including cash on hand of $11.7 million. Total current liabilities were $7.0 million, with zero debt currently due within 12 months.

As of March 31, 2020, the Company had 37,952,477 equity shares issued and outstanding, and 153,463,362 shares outstanding on an as-converted, fully-diluted basis.

Outlook Commentary

Dr. Kingsley concluded, “With most of the major development projects in our core markets effectively complete, we expect minimal capital expenditures during the remainder of fiscal year 2020, and we should also begin to see the benefits of recent cost reduction initiatives materialize more substantially in our second quarter results. The optionality of our valuable collection of state-based cannabis licenses and intellectual property continues to provide substantial opportunities to improve our cash position and future financial performance, and we believe our six core market strategy will enable us to begin generating positive cash flow in the first half of next year.”

Conference Call and Webcast Information

Vireo Health management will host a conference call with research analysts on Tuesday, June 16, 2020 at 8:00 a.m. ET to discuss its financial results for its first quarter ended March 31, 2020. The conference call may be accessed by dialing 833-714-0863 (Toll-Free) or 778-560-2618 (International) and entering conference ID 7783416.

A live audio webcast of this event will also be available in the Events & Presentations section of the Company’s Investor Relations website at https://investors.vireohealth.com/events-and-presentations/default.aspx and will be archived for one year.

Additional Information

Additional information relating to the Company’s first quarter 2020 results is available on SEDAR at www.sedar.com. Vireo Health refers to certain non-IFRS financial measures such as adjusted net income, Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and adjusted EBITDA (defined as earnings before interest, taxes, depreciation, amortization, less certain non-cash equity compensation expense, one-time transaction fees, and other non-cash items. These measures do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers. Please see the Supplemental Information and Reconciliation of Non-IFRS Financial Measures at the end of this news release for more detailed information regarding non-IFRS financial measures.

About Vireo Health International, Inc.

Vireo Health International, Inc. is a physician-led cannabis company focused on building long-term, sustainable value by bringing the best of medicine, science, and engineering to the cannabis industry. With operations strategically located in early-stage, limited-license medical markets, Vireo manufactures pharmaceutical-grade cannabis products in environmentally-friendly greenhouses and distributes its products through its growing network of Green Goods™ retail dispensaries and hundreds of third-party locations. Its current core medical markets of New York, Minnesota, Pennsylvania, Arizona, New Mexico, and Maryland all have the potential to enact adult-use legalization in the next three to 24 months, and two additional markets in Puerto Rico and Massachusetts also have potential for commercialization. Combined with its teams’ focus on driving scientific innovation within the industry and securing meaningful intellectual property, Vireo believes it is well positioned to become a global market leader in the cannabis industry. Today, eight of its 10 markets are operational with 13 of its 32 total retail dispensary licenses open for business. For more information about the company, please visit www.vireohealth.com.

Forward-Looking Statement Disclosure

This news release contains “forward-looking information” within the meaning of applicable United States and Canadian securities legislation. To the extent any forward-looking information in this news release constitutes “financial outlooks” within the meaning of applicable United States or Canadian securities laws, such information is being provided as preliminary financial results and the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such financial outlooks. Forward-looking information contained in this press release may be identified by the use of words such as “plans,” “expects” or “does not expect,” “is expected,” “look forward to,” “budget” “scheduled,” “estimates,” “forecasts,” “will continue,” “intends,” “anticipates,” “does not anticipate,” “believes,” “should,” “should not,” or variations of such words and phrases or indicates that certain actions, events or results “may,” “could,” “would,” “might,” or “will” “be taken,” “occur,” or “be achieved.”  Forward-looking information may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, milestones, strategies and outlook of Vireo, and includes statements about, among other things, the value of assets, the amount of liabilities, the designation of certain businesses or assets as “core” or “non-core,” decisions about allocation of capital and other resources, future developments, the future operations, potential market opportunities including the potential effects of the approval of adult-use cannabis in one or more markets, potential opportunities to monetize assets, strengths and strategy of the Company. Forward-looking information is provided for the purpose of presenting information about management’s current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. These statements should not be read as guarantees of future performance or results. Forward-looking information includes statements with respect to the opportunities for the Company to leverage increasing scale to improve sales growth and operating performance; the anticipation that the medical-only state markets in which the Company’s subsidiaries operate could enact recreational-use legislation over the near-to mid-term future; the anticipated benefits of strategic initiatives; the effects of reduction of corporate overhead and SG&A expenses; improvement to unit economics; expansion of retail dispensaries in key markets; and the expectation that such expansion will drive stronger revenue growth, operating margins and free cash flow. Forward-looking information includes both known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements or information contained in this news release including, without limitation, the impact on the Company’s businesses and financial results of epidemics and pandemics, including the COVID-19 pandemic. Financial outlooks, as with forward-looking information generally, are, without limitation, based on the assumptions and subject to various risks as set out herein. Our actual financial position and results of operations may differ materially from management’s current expectations and, as a result, our revenue and cash on hand may differ materially from the revenue and cash values provided in this news release. Forward-looking information is based upon a number of estimates and assumptions of management, believed but not certain to be reasonable, in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors relevant in the circumstances, including assumptions in respect of current and future market conditions, the current and future regulatory environment; and the availability of licenses, approvals and permits.

Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct, including preliminary financial expectations regarding the annualized reduction of corporate overhead and SG&A expenses. Actual results and developments may differ materially from those contemplated by these statements. Forward-looking information is subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking information. Such risks and uncertainties include, but are not limited to, risks related to preliminary financial results being subject to the completion of the Company’s financial closing procedures and not being audited or reviewed by the Company’s independent registered public accounting firm; the timing of recreational-use legislation in markets where the Company currently operates; current and future market conditions, including the market price of the subordinate voting shares of the Company; federal, state, local and foreign government laws, rules and regulations, including federal and state laws in the United States relating to cannabis operations in the United States; limited operating history; changes in laws, regulations and guidelines; operational, regulatory and other risks; execution of business strategy; management of growth; difficulty to forecast; conflicts of interest; risks inherent in an agricultural business; liquidity and additional financing; foreign private issuer status and the risk factors set out in the Company’s listing statement dated March 19, 2019, filed with the Canadian securities regulators and available under the Company’s profile on SEDAR at www.sedar.com.

The statements in this news release are made as of the date of this release. The Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Supplemental Information

The financial information reported in this news release is based on audited financial statements for the fiscal year ended December 31, 2019 and unaudited condensed interim consolidated financial statements for the fiscal quarter ended March 31, 2020. All financial information contained in this news release is qualified in its entirety with reference to such financial statements. To the extent that the financial information contained in this news release is inconsistent with the information contained in the Company’s audited financial statements, the financial information contained in this news release shall be deemed to be modified or superseded by the Company’s audited financial statements. The making of a modifying or superseding statement shall not be deemed an admission for any purposes that the modified or superseded statement, when made, constituted a misrepresentation for purposes of applicable securities laws.

 

VIREO HEALTH INTERNATIONAL, INC.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

As at March 31, 2020 and December 31, 2019

(Unaudited – Expressed in United States Dollars)

March 31,

December 31,

2020

2019

ASSETS

Current Assets

Cash

$               11,729,866

$                    7,641,673

Restricted Cash

1,592,500

1,592,500

Receivables

859,212

1,025,963

Inventories

30,460,205

32,437,308

Biological Assets

16,334,123

6,134,209

Prepaid Expenses

1,151,981

2,285,548

Deferred acquisition costs

28,136

28,136

62,156,023

51,145,337

Non-Current Assets

Right of Use Assets

32,019,710

25,921,603

Property and Equipment

13,533,060

13,326,337

Deposits

2,626,366

2,651,366

Deferred Loss on Sale Leaseback

–

30,481

Goodwill

3,132,491

3,132,491

Intangible Asset

8,847,047

9,001,237

60,158,674

54,063,515

Total Assets

$          122,314,697

$             105,208,852

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current Liabilities

Accounts Payable and Accrued Liabilities

$               4,285,630

$                  3,140,086

Current portion of Right of Use Liability

480,610

619,827

Derivative Liability

2,229,101

–

6,995,341

3,759,913

Long-Term Liabilities

Deferred Income Taxes

6,767,000

4,528,000

Right of Use Liability

35,507,281

28,665,681

Long-Term Debt

1,110,000

1,110,000

Convertible debt

836,644

817,446

51,216,266

38,881,040

Shareholders’ Equity

Share Capital

122,511,602

118,453,142

Reserves

10,698,447

7,962,509

Deficit

(62,111,618)

(60,087,839)

71,098,431

66,327,812

Total Liabilities and Equity

$          122,314,697

$             105,208,852

 

 

VIREO HEALTH INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS

For the Three Months Ended March 31, 2020 and 2019

(Unaudited – Expressed in United States Dollars)

Three Months Ended

Three Months Ended

March 31,

March 31,

2020

2019

REVENUE

$           12,118,567

$                     5,777,792

Production Costs

(8,701,653)

(3,665,869)

Gross Profit Before Fair Value Adjustments

3,416,914

2,111,923

Realized Fair Value Amounts Included in Inventory Sold

(7,768,781)

(3,026,731)

Unrealized Fair Value Gain on Growth of Biological Assets

15,725,754

8,065,726

Gross Profit

11,373,887

7,150,918

EXPENSES

Depreciation

315,278

373,779

Professional fees

729,121

574,260

Salaries and wages

3,564,715

1,152,940

Selling, general and administrative expenses

2,313,506

1,444,749

Share Based Compensation

2,735,938

201,187

9,658,558

3,746,915

OTHER INCOME (EXPENSE)

Loss on sale of property and equipment

(13,800)

(484)

Interest expense

(1,712,656)

(1,023,815)

Accretion expense

(19,198)

(9,671)

Listing expense

–

(3,464,613)

Gain (Loss) on derivative liability

1,325,928

–

Inventory impairment

(139,008)

–

Other expense

(436,274)

(140,179)

Total Other Income (Expense)

(995,008)

(4,638,762)

 INCOME (LOSS) BEFORE INCOME TAXES 

720,321

(1,234,759)

Current income taxes

(505,100)

(745,000)

Deferred income taxes

(2,239,000)

(1,467,000)

PROVISION (RECOVERY) FOR INCOME TAXES

(2,744,100)

(2,212,000)

LOSS AND COMPREHENSIVE LOSS

$         (2,023,779)

$                 (3,446,759)

Weighted Average Shares Outstanding – basic and diluted

88,519,845

59,757,979

Net Loss Per Share – basic and diluted

$                  (0.02)

$                          (0.06)

 

 

VIREO HEALTH INTERNATIONAL, INC.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

For the Three Months Ended March 31, 2020 and 2019

(Unaudited – Expressed in United States Dollars)

Three Months Ended

Three Months Ended

March 31,

March 31,

2020

2019

Cash Flows from Operating Activities:

     Net income (loss)

$              (2,023,779)

$              (3,446,759)

      Item not affecting cash: 

     Depreciation and amortization

469,467

373,779

     Loss on sale of property and equipment

13,800

484

     Share-based compensation

2,735,938

201,187

     Gain on derivative liability

(1,325,928)

–

     Fair value adjustment on sale of inventory

7,768,781

3,026,731

     Fair value adjustment on growth of biological assets

(15,725,754)

(8,065,726)

     Interest expense

1,723,368

1,033,562

     Deferred income taxes

2,239,000

1,467,000

     Deferred financing costs

–

448,480

     Listing expense

–

2,999,986

     Amortization of deferred tenant improvements

–

(87,143)

     Deferred gain/loss on sale leaseback

30,481

–

     Changes in non-cash working capital

2,768,567

87,710

Cash Flows Used in Operating Activities

(1,326,059)

(1,960,709)

Cash Flows from Investing Activities:

Purchase of property and equipment

(506,336)

(984,732)

Acquisition costs on business combinations and assets

–

(12,715,901)

Deferred acquisition costs

–

(48,162)

Deposits

25,000

–

Cash Flows from Investing Activities

(481,336)

(13,748,795)

Cash Flows from Financing Activities:

Proceeds from sale of stock, net of issuance costs

7,613,490

47,542,878

Lease payments

(183,876)

(126,251)

Interest paid

(1,534,026)

(930,325)

Cash Flows from Financing Activities

5,895,588

46,486,302

Net Change in Cash 

$               4,088,193

$             30,776,798

Cash, Beginning of the Year

7,641,673

9,264,110

Cash, End of the Year

$             11,729,866

$             40,040,908

 

 

Reconciliation of Non-IFRS Financial Measures

EBITDA, Adjusted Net loss EBITDA and Adjusted EBITDA are non-IFRS measures and do not have standardized definitions under IFRS. The following information provides reconciliations of the supplemental non-IFRS financial measures, presented herein to the most directly comparable financial measures calculated and presented in accordance with IFRS. The Company has provided the non-IFRS financial measures, which are not calculated or presented in accordance with IFRS, as supplemental information and in addition to the financial measures that are calculated and presented in accordance with IFRS. These supplemental non-IFRS financial measures are presented because management has evaluated the financial results both including and excluding the adjusted items and believe that the supplemental non-IFRS financial measures presented provide additional perspective and insights when analyzing the core operating performance of the business. These supplemental non-IFRS financial measures should not be considered superior to, as a substitute for or as an alternative to, and should be considered in conjunction with, the IFRS financial measures presented.

Reconciliation of Net Loss to Adjusted Net Loss and Adjusted EBITDA

Three Months Ended

March 31,

2020

2019

Net loss

$         (2,023,779)

$       (3,446,759)

Net fair value adjustments

(7,956,973)

(5,038,995)

Listing expense

–

3,464,613

Gain (Loss) on Derivative Liability

(1,325,928)

–

Inventory adjustment

139,008

–

Share-based compensation

2,735,938

201,187

Severance Expense

339,997

–

Adjusted net loss (non-IFRS)

$         (8,091,737)

$       (4,819,954)

Net loss

$         (2,023,779)

$       (3,446,759)

Interest income

(124)

(76)

Interest expense

1,712,780

1,023,891

Accretion expense

19,198

9,671

Income taxes

2,744,100

2,212,000

Depreciation

315,278

373,779

EBITDA (non-IFRS)

$           2,767,453

$           172,506

Net fair value adjustments

(7,956,973)

(5,038,995)

Listing expense

–

3,464,613

Gain (Loss) on Derivative Liability

(1,325,928)

–

Inventory adjustment

139,008

–

Share-based compensation

2,735,938

201,187

Severance Expense

339,997

–

Adjusted EBITDA (non-IFRS)

$         (3,300,505)

$       (1,200,689)

Net Loss Per Share – basic and diluted for the three months ended March 31, 2020 and 2019 was $(0.02)and $(0.06), respectively.

 

 

Media Inquiries
Albe Zakes
Vice President, Corporate Communications
albezakes@vireohealth.com
(267) 221-4800

Investor Inquiries
Sam Gibbons
Vice President, Investor Relations
samgibbons@vireohealth.com
(612) 314-8995

CisionView original content to download multimedia:http://www.prnewswire.com/news-releases/vireo-health-announces-first-quarter-2020-financial-results-301077269.html

SOURCE Vireo Health International, Inc.

Posted on

Buzz Capital and Novamind Terminate Letter of Intent

Ottawa, Ontario–(Newsfile Corp. – June 16, 2020) –  Buzz Capital Inc. (TSXV: BUZ.P) (the ”Corporation”) announced today that the proposed business combination between the Corporation and Novamind Ventures Inc. originally announced on May 18, 2020, will not be proceeding. After determining that the regulatory requirements to complete the transaction could not be completed on a timely basis, the parties have mutually agreed to terminate the Letter of Intent dated May 8, 2020.

The Corporation will continue to search for prospective opportunities to complete its qualifying transaction and maximize value for shareholders.

For further information, please contact:

Buzz Capital Inc.

Chuck Rifici
CEO, CFO and Director
Tel: (613) 239-0531

You may als
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Vireo Health Announces Resignation of Bruce Linton as Board Member

VIEW ALL NEWS

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CHAMPIGNON PROVIDES CORPORATE UPDATE; ANNOUNCES NAME CHANGE, REBRANDING AND PLANNED SPIN OUT

VANCOUVER, British Columbia, June 12, 2020 – Champignon Brands Inc. (“Champignon” or the “Company”) (CSE: SHRM) (FWB: 496) (OTCQB: SHRMF), a human optimization sciences company with an emphasis on ketamine and psychedelic medicine, since commencing trading on March 2, 2020 has expanded its initiatives and rapidly executed on such initiatives to position the Company as a leading publicly traded psychedelic medicine company developing novel rapid onset treatments for depression, post-traumatic stress disorder (“PTSD”), and substance-use disorders (“SUD”) via the clinical delivery of ketamine and ketamine-derivatives. The Company is pleased to share its corporate advancements and achievements over the last quarter, which target key segments in the psychedelics as medicines industry that will complement each other as the sector matures and accelerates, including:

  • Acquisition of the Canadian Rapid Treatment Centre of Excellence (the “CRTCE”), a vertically integrated, world-leader of peer-reviewed publications that specializes in rapid-onset treatment centres operating from proof-of-concept to human trials relating to ketamine for adults with depression;
  • Executed term sheet to acquire California-based Wellness Clinic of Orange County Inc. (the “WCOOC”), a ketamine infusion treatment centre located within Mission Hospital’s Laguna Beach campus;
  • Appointment of Dr. Roger McIntyre as Chief Executive Officer
  • Appointment of Pat McCutcheon and Dr. Bill Wilkerson as Directors of the Company;
  • Establishment of its North American Clinical Expansion Committee, tasked with accelerating Champignon’s entry into the United States where it plans to open or acquire a minimum of five new clinical entities during 2020;
  • Advancement of its new chemical entity (“NCE”) IP portfolio as it pertains to ketamine and psilocybin/psilicin molecular scaffolds via the engagement of a leading contract research organization (“CRO”) in the drug discovery space;
  • Continuing development of commercialization initiatives for its planned intranasal (“IN”) ketamine delivery platforms;
  • Ongoing pre-clinical studies, and eventual planned human clinical trials, in collaboration with the University of Miami’s Miller School of Medicine, with the objective of demonstrating safety and efficacy of the combination of psilocybin and cannabidiol in treating mild TBI with PTSD or stand-alone PTSD;
  • Addition of planned central fill and compounding infrastructure for its proprietary topical ketamine formulations, as well as the dispensing of its products throughout a pharmacy network; and
  • Closing its previously announced CAD $15,000,375 bought-deal private placement co-lead by Canaccord Genuity Corp. and Eight Capital, including the exercise in full of the option granted to the Underwriters.

“While the topic of medical psychedelics has recently gained worldwide momentum, I am exceptionally pleased with strategic approach our team has taken in establishing a differentiated platform with operating treatment clinics in the U.S. and Canada that also facilitate research and development of a wide range of therapeutic and medical applications,” Dr. Roger McIntyre, CEO Champignon. “We have made tremendous progress to date and have proven our ability to quickly seize opportunities in this rapidly emerging industry. Looking forward to the second half of 2020, we will continue to work towards entering new markets and delivering new and innovative solutions throughout North America.”

NAME CHANGE & CORPORATE REBRANDING

The Company also announces that it plans to change its name from Champignon Brands Inc. to Apotheosis Scientific Ltd., or such other name as the Company’s directors may determine to better reflect the Company’s business activities going forward. Concurrently with the name change, the CUSIP number and ISIN of the company’s issued and outstanding common shares may change. The effective date of the name change will be confirmed by the Company upon receipt of all required regulatory approvals.

Furthermore, the Company also plans to debut a new corporate website, investor presentation, and branding campaign alongside the effective date of its proposed name change.

CONTEMPLATED PLAN OF ARRANGEMENT (SPIN OUT)

In addition, the Company advises that it is contemplating a corporate reorganization by way of a plan of arrangement (the “Arrangement”) to liberate the value of its functional mushroom-infused consumer packaged goods (the “CPG Business”) division. Under the terms of the Arrangement currently being contemplated, the Company’s CPG Business would be spun out as a separate publicly listed reporting issuer (“Newco”).

The Company plans to announce a record date in connection with the Arrangement in due course and anticipates the record date will occur within Q3 of 2020. It is expected that upon closing of the Arrangement, each shareholder of the Company will receive common shares of Newco based on the amount of Company shares held on the record date.

There is no assurance that the Arrangement or the Offering will proceed on the terms above or at all. The Arrangement and the Offering would be subject to customary approvals, including shareholder approval and regulatory approval, as applicable.

ON BEHALF OF THE BOARD OF DIRECTORS

Dr. Roger McIntyre
Chief Executive Officer
E: info@braxiascientific.com

FOR INVESTOR INQUIRIES:

Champignon Brands | Storyboard Communications
Investor Relations, Toronto, Canada
Investor Line:  +1 (833) 375-9995 x611
E: champignonbrands@storyboardcommunications.com

Tyler Troup
Circadian Group
E: SHRM@braxiascientific.com

FOR CHAMPIGNON BRANDS FRENCH INQUIRIES:
Remy Scalabrini, Maricom Inc.
E: rs@maricom.ca
T: (888) 585-MARI

The CSE and Information Service Provider have not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

Forward-looking Information Cautionary Statement

Except for statements of historic fact, this news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions and estimates at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements including, but not limited to delays or uncertainties with regulatory approvals, including that of the CSE. There are uncertainties inherent in forward-looking information, including factors beyond the Company’s control. There are no assurances that the business plans for Champignon Brands described in this news release will come into effect on the terms or time frame described herein. The Company undertakes no obligation to update forward-looking information if circumstances or management’s estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. Additional information identifying risks and uncertainties that could affect financial results is contained in the Company’s filings with Canadian securities regulators, which are available at www.sedar.com.

Posted on

Revive Therapeutics Expands Research Partnership for Novel Formulation Development and Clinical Research of Psilocybin with the University of Wisconsin-Madison

TORONTO, June 12, 2020 – Revive Therapeutics Ltd. (“Revive” or the “Company”) (CSE: RVV), a specialty life sciences company focused on the research and development of therapeutics for medical needs and rare disorders, is pleased to announce an expansion to the sponsored research partnership agreement (“SRPA”) entered with the University of Wisconsin-Madison to evaluate novel formulations of psilocybin and a Phase 1 clinical study investigating the therapeutic application of psilocybin for an undisclosed addiction use disorder.

“We are pleased to have expanded our research partnership with the University of Wisconsin-Madison in the development of novel psilocybin formulations that will serve as the platform to create unique psychedelic-based therapeutics for clinical research targeting specific medical needs, such as addiction use disorders,” said Michael Frank, Revive’s Chief Executive Officer. “As part of our psychedelic-based pharmaceutical strategy, we are focused on balancing research and development of novel psilocybin-based formulations and clinical research of psilocybin to create a robust product pipeline backed by intellectual property and clinical data with the aim to pursue the FDA regulatory pathway for commercialization. Revive plans to expand its clinical development pipeline with psilocybin for various addiction and dependence disorders.”

The research and development work being carried out at the University of Wisconsin-Madison focuses on tannin-chitosan composites in the form of thin films, hydrogels and 3D foams. The research will include the development of composite formulations, physio-chemical characterization (e.g. tensile strength of films) of composite materials and rate of psilocybin release from composites.  Final formulations will be investigated in pre-clinical and clinical studies in various diseases and disorders.  The Company has identified tannin-chitosan composite thin films as the lead candidate for the development of a unique delivery platform for therapeutic doses (1-20mg) of psilocybin into the oral cavity.

The Company also plans to finalize a sponsorship program around a Phase 1 clinical study examining psilocybin for the treatment of an undisclosed addiction use disorder.  The clinical study will be conducted at the University of Wisconsin-Madison, School of Medicine and Public Health, and School of Pharmacy, which holds a Wisconsin special authorization and DEA license to perform clinical research with psilocybin.

About Revive Therapeutics Ltd.

Revive is a life sciences company focused on the research and development of therapeutics for infectious diseases and rare disorders, and it is prioritizing drug development efforts to take advantage of several regulatory incentives awarded by the FDA such as Orphan Drug, Fast Track, Breakthrough Therapy and Rare Pediatric Disease designations. Currently, the Company is exploring the use of Bucillamine for the potential treatment of infectious diseases, with an initial focus on severe influenza strains including COVID-19. With its recent acquisition of Psilocin Pharma Corp., Revive is advancing the development of Psilocybin-based therapeutics in various diseases and disorders. Revive’s cannabinoid pharmaceutical portfolio focuses on rare inflammatory diseases and the company was granted FDA orphan drug status designation for the use of Cannabidiol (CBD) to treat autoimmune hepatitis (liver disease) and to treat ischemia and reperfusion injury from organ transplantation. For more information, visit www.ReviveThera.com.

For more information, please contact:
Michael Frank
Chief Executive Officer
Revive Therapeutics Ltd.
Tel: 1 888 901 0036
Email: mfrank@fbn.436.myftpupload.com
Website: www.revivethera.com

Neither the Canadian Securities Exchange nor its Regulation Services Provider have reviewed or accept responsibility for the adequacy or accuracy of this release.

Cautionary Statement

This press release contains ‘forward-looking information’ within the meaning of applicable Canadian securities legislation. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on Revive’s current belief or assumptions as to the outcome and timing of such future events. Forward looking information in this press release includes information with respect to the Offering, including the intended use of proceeds. Forward-looking information is based on reasonable assumptions that have been made by Revive at the date of the information and is subject to known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking information. Given these risks, uncertainties and assumptions, you should not unduly rely on these forward-looking statements. The forward-looking information contained in this press release is made as of the date hereof, and Revive is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. The foregoing statements expressly qualify any forward-looking information contained herein. Reference is made to the risk factors disclosed under the heading “Risk Factors” in the Company’s annual MD&A for the fiscal year ended June 30, 2019, which has been filed on SEDAR and is available under the Company’s profile at www.sedar.com.

Posted on

CHAMPIGNON ANNOUNCES CLOSING OF $15 MILLION BOUGHT DEAL PRIVATE PLACEMENT

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, British Columbia, June 11, 2020 – Champignon Brands Inc. (“Champignon” or the “Company”) (CSE: SHRM) (FWB: 496) (OTCQB: SHRMF), a human optimization sciences company with an emphasis on ketamine and psychedelic medicine, is pleased to announce the closing of its previously announced “bought deal” private placement (the “Offering“) of units of the Company (“Units“) for aggregate gross proceeds of $15,000,375 which includes the full exercise of the option granted to the Underwriters (as defined below).

A total of 17,647,500 Units were sold pursuant to the Offering at a price of $0.85 per Unit. Each Unit is comprised of one common share of the Company (a “Common Share“) and one-half of one Common Share purchase warrant of the Company (each whole warrant, a “Warrant“). Each Warrant entitles the holder thereof to acquire one Common Share (a “Warrant Share“) at a price of $1.15 per Warrant Share until June 11, 2022. The Offering was completed by a syndicate of underwriters co-led by Canaccord Genuity Corp. and Eight Capital, and includes Gravitas Securities Inc. (collectively, the “Underwriters”).   All securities issued pursuant to the Offering are subject to a statutory four month and one day hold period.

The Company intends to use the net proceeds of the Offering for the Company’s North American clinical expansion program as well as for general working capital purposes.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any U.S. state securities laws, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) absent registration under the U.S. Securities Act and applicable state securities laws or an exemption from such registration requirements is available.

 

About Champignon Brands Inc.

Champignon Brands (CSE: SHRM) is focused on the formulation and manufacturing of novel ketamine, anaesthetics, and adaptogenic delivery platforms for nutraceutical and psychedelic medicine while being supported by a leading psychedelics medicines clinic platform. The Company is pursuing the development and commercialization of rapid onset treatments capable of improving health outcomes, such as depression and post-traumatic stress disorder (PTSD), as well as substance and alcohol use disorders. Under a collaborative research agreement with the University of Miami’s Miller School of Medicine, the Company is conducting preclinical studies and eventual human clinical trials, with the objective of demonstrating safety and efficacy of the combination of psilocybin and cannabidiol in treating mTBI with PTSD or stand-alone PTSD. Champignon continues to be inspired by sustainability as its medicinal mushroom-infused SKUs are organic, non-GMO, and vegan certified. For more information, visit the Company’s website at: https://braxiascientific.com/.

ON BEHALF OF THE BOARD OF DIRECTORS

Dr. Roger McIntyre
Chief Executive Officer
E: info@braxiascientific.com

FOR INVESTOR INQUIRIES:

Champignon Brands | Storyboard Communications
Investor Relations, Toronto, Canada
Investor Line:  +1 (833) 375-9995 x611
E: champignonbrands@storyboardcommunications.com

Tyler Troup
Circadian Group
E: SHRM@braxiascientific.com

FOR CHAMPIGNON BRANDS FRENCH INQUIRIES:
Remy Scalabrini, Maricom Inc.
E: rs@maricom.ca
T: (888) 585-MARI

The CSE and Information Service Provider have not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

Forward-looking Information Cautionary Statement

Except for statements of historic fact, this news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions and estimates at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements including, but not limited to delays or uncertainties with regulatory approvals, including that of the CSE. There are uncertainties inherent in forward-looking information, including factors beyond the Company’s control. There are no assurances that the business plans for Champignon Brands described in this news release will come into effect on the terms or time frame described herein. The Company undertakes no obligation to update forward-looking information if circumstances or management’s estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. Additional information identifying risks and uncertainties that could affect financial results is contained in the Company’s filings with Canadian securities regulators, which are available at www.sedar.com.

Posted on

Numinus receives Health Canada licence amendment to produce and extract psilocybin from mushrooms

Numinus becomes first publicly traded company in Canada approved to conduct research of this kind under a Health Canada licence

VANCOUVER (June 11, 2020)—Numinus Wellness Inc. (TSX-V:NUMI – “Numinus” or the “Company”) has received Health Canada approval to amend the Company’s existing Licence under the Controlled Drug and Substances Act to allow Numinus researchers to conduct research to standardize the extraction of psilocybin from mushrooms. The amendment means Numinus is the first publicly traded company in Canada to be granted a licence by Health Canada to conduct research of this kind.

With this regulatory approval, Numinus is able to proceed with the production of naturally sourced, sustainable psilocybin for research purposes that will support the emerging field of psychedelic assisted therapy and research, at lower costs to currently produced synthetic psilocybin. The licence also allows Numinus to develop and licence its own exclusive IP for further product development in partnership with leading research organizations — something the research community has been seeking to secure. The work will be eligible for the Government of Canada’s Scientific Research and Experimental Development (SR&ED) tax incentive program and will lay a foundation for grant applications.

“We are proud to be at the forefront of a new therapeutic category by advancing evidence-based science focused on wellness and personal connection at its core,” says Numinus CEO Payton Nyquvest. “Numinus is the only publicly traded company in Canada approved to develop a consistent psilocybin extraction method from naturally-produced mushrooms at a time when alternative therapeutic methods are increasingly being investigated and demand from clinical research is growing.”

Working from the 7,000 square-foot Numinus Bioscience research facility and laboratory, senior research scientists Dr. Kristina Grotzinger and Dr. Bernd Keller will focus on developing a proprietary extraction method from mushrooms to allow for consistent dosing and application of naturally produced psilocybin. Once a proprietary method has been developed, the Company intends to explore supply agreements with leading research organizations to make use of the product in their clinical and therapeutic work.

Researchers at Johns Hopkins University, the Multidisciplinary Association for Psychedelic Studies (MAPS) and other leading researchers have published studies showing the benefits of psychedelic substances in treating a range of mental health issues. Further, the US Food and Drug Administration has granted breakthrough therapy status for psilocybin for the treatment of depression — illustrating the growing demand for therapeutic access to psilocybin.

“In most cases, the creation of synthetic compounds are less pure than those found in nature, which is the case with psilocybin,” says Dr. Grotzinger. “There is risk of contamination from solvents, gases and other chemicals, which makes them less safe to work with and requires added safety and processing expense. By working directly with the mushroom in its natural state, these risks are reduced, as is the cost to extract the psilocybin.” Grotzinger added that standardized plant or fungi extracts are accepted by European standards and are a common dosage form in Europe.

– 30 –

Contact:

Investor Inquiries:

invest@numinus.ca

Media Inquiries:

Emily Edwards, NATIONAL

eedwards@national.ca

604-842-6490

General Inquiries:

hello@numinus.ca

1-833-NUM-INUS (1-833-686-4687)

Pour investir et obtenir des renseignements généraux en français:

Remy Scalabrini, Maricom

investir@numinus.ca

888-585-6274

About Numinus

Numinus is a Vancouver-based health care company helping to support the universal desire to heal and be well. Through its wholly-owned subsidiary Salvation Botanicals, Numinus has a Health Canada cannabis testing licence that allows the Company to test and analyze cannabis products from licensed producers. In addition, it is a late-stage applicant to receive a Health Canada standard processing licence to produce cannabis products. Numinus, through the same subsidiary, also has a dealer’s licence which allows the Company to test, possess, buy and sell MDMA, psilocybin, psilocin, DMT and mescaline. The Health Canada license also allows import/export, testing and R&D of these substances. The expanded licence will allow Numinus to support the growing number of studies on the potential benefits of psychedelic therapies through research projects, product development, and the supply and distribution of these substances. Numinus Wellness is dedicated to therapies that enhance and supplement existing options for people wanting lasting physical, mental and emotional health — with psychedelic treatments at its core when approved for therapeutic and research use. Psychedelics will be part of this offering but will only be available for treatment once approved by regulators and governing bodies — a process Numinus is helping to support. For more information, visit www.numinus.ca.

Forward Looking Statements

This news release contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, are “forward-looking statements.” Forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward looking statements. Such risks and uncertainties include, among others, dependence on obtaining and maintaining regulatory approvals, including acquiring and renewing federal, provincial, municipal, local or other licenses and any inability to obtain all necessary governmental approvals licenses and permits to operate and expand the Company’s facilities; regulatory or political change such as changes in applicable laws and regulations, including federal and provincial legalization, due to inconsistent public opinion, perception of the medical-use and adult-use marijuana industry, bureaucratic delays or inefficiencies or any other reasons; any other factors or developments which may hinder market growth; the Company’s limited operating history and lack of historical profits; reliance on management; the Company’s requirements for additional financing, and the effect of capital market conditions and other factors on capital availability; competition, including from more established or better financed competitors; and the need to secure and maintain corporate alliances and partnerships, including with research and development institutions, customers and suppliers. These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. Although the Company has attempted to identify important risk factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other risk factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. The Company has no obligation to update any forward-looking statement, even if new information becomes available as a result of future events, new information or for any other reason except as required by law.